Ghana: India Export-Import (EXIM) to the release of US$150 million for mechanization project

The government’s determination to improve agricultural mechanization services in communities across the country has received a major boost.

This follows the sealing of final agreements with the India Export-Import (EXIM) Bank for the release of US$150 million for the take-off of the state’s new mechanization project.

It will also provide water for the inhabitants of Yendi and surrounding towns and villages.

This was disclosed by Vice-President Mahamudu Bawumia after he led the Ghanaian delegation to a closed-door meeting with officials of EXIM Bank of India on the sidelines of the ongoing 14th CII-EXIM Bank Conclave on India-Africa Partnership Project in New Delhi, India.

Dr Bawumia said all discussions for the take-off of both projects were sealed, with the final sign-off set for next month.

The Indian delegation was led the managing director of EXIM Bank India, David Rasquinha.

Credit facility
During a visit to India last year, President Nana Addo Dankwa Akufo-Addo held discussions with EXIM Bank of India about the possibility of financing agreements between the two countries for a $150m credit facility to strengthen agricultural mechanisation services in Ghana.

He also discussed a further $30m facility for the Yendi water project.

The Parliament of Ghana has given approval for the two deals.

Agric plans
The agricultural mechanisation project is expected to provide equipment and training for the various Agricultural Mechanisation Services Enterprise Centres (AMSECs) across Ghana.

The Yendi water project will provide water to the 133,000-plus residents of Yendi municipality and surrounding towns and villages, which contribute greatly to Ghanaian agriculture by producing food and cash crops on a large scale.

Firm friendship
Dr Bawumia expressed satisfaction at the commitment and assistance offered by the EXIM Bank of India and the Indian government to Ghana over the years. He pledged enhanced friendship and co-operation between the two countries.

Earlier, Dr Bawumia had a lively meeting with leaders and captains of industry in India. He took the opportunity, together with leading figures in Ghana’s investment drive, to showcase the “Ghana Project” and what the government is doing to create an investor-friendly environment for business.

Leaders of Indian-owned companies already operating in Ghana also took the opportunity to tell their Ghana story, at the same time providing crucial feedback on ways to make the business environment even better.

Campaign promise
As part of its commitment to revive the agric sector, the New Patriotic Party promised in its 2016 manifesto to revive most of the 89 non-functional agricultural mechanisation centres it inherited from the erstwhile John Mahama government.

The NPP said it was committed to putting forward solutions to tackle the challenges that have crippled agriculture in Ghana in the past few years.